A 50% share price increase Thursday continues a strong roll from Vancouver-based cobalt explorer Global Cobalt Corporation (TSX:V.GCO
, Stock Forum
) that has seen shares in the company jump 87.5% in three days, from $0.04 to $0.075.
The $4.17m market cap company traded at a 2.17 million share volume Thursday on the back of news the company had drilled and logged its first cores at the Karakul Cobalt Project in the Altai Republic of Russia.
“The intent of the program is to validate the historic Soviet resources, expand the mineralized envelope within the area included in the current mine permit, expand the area of known mineralization and to increase the metallurgical understanding of the project,” said a company release
. “A metallurgical scoping study is also included in the work program. The program is expected to run for approximately six months.”
The $3 million project will bring old Soviet drill results into line with Canadian standards, allowing the company to prepare a NI 43-101 compliant mineral resource for the project.
Dr. Michael Hitch, COO of the company said in the release, "We are very pleased to finally get the first phase of drilling underway on Karakul. Core recovery has been excellent, and we are getting excellent productivity from the Russian drill crews. We are intercepting mineralization where it is expected and are encouraged by the advancement of the drill campaign thus far. We look forward to providing drill results over the coming weeks and months."
The company announced a small $185,000 offering of units at a price of $0.05 per share to raise funds for working capital.